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(a) The original object of balance of civil pay was to encourage

volunteering. In the 1939 war balance of civil pay was con- tinued despite the fact that conscription was operative from the outset. In any future war conscription will undoubtedly come into force immediately, and the original motive for balance of civil pay has therefore disappeared. At the same time, announcement of a decision to discontinue balance of civil pay in war wo ld almost certainly operate to the detriment of peace-time recruiting to the Auxiliary and Reserve Forces, the building up of whose volunteer nucleus is particularly necessary over the next three or four years.

(b) Forces pay was once very small indeed and for the family man

with commitments, balance of civil pay was the sole protection against possibly very considerable hardship. The present position is very different. Forces pay is greatly improved and the supplementary family allowances (not to mention the social services generally) go some way towards meeting the married man's commitments. National Service Grants will be available as in the past to help men in the Forces to meet their continuing civil liabilities.

(c) Men and women in the Forces who have no balance of civil pay

will contend that there is no justification for giving better treatment to civil servants or to persons employed by public or semi-public bodies. The wider the field over which balance of civil pay is given the greater will be the sense of injustice among those whose pay is not made up.

(d) Hardships will undoubtedly occur as a result of the call-up of public servants who have family commitments, but the right way to deal with such hardships is through the National Service Grants system, which gives help where it is needed, and not through the balance of civil pay system, which helps indiscriminately those with and without commitments.

(e) On the face of it the discontinuance of balance of civil pay even

accompanied by an extension of the scope of the War Service Grants scheme should produce savings both in cash and in man-power.

Conclusion.. The arguments are undoubtedly closely balanced. As far as we can see the discontinuance of civil pay would save both money and man-power. But undoubtedly such a decision would raise the political difficulties to which we have drawn attention. It seems to us, therefore, that the decision must be taken largely on political considera- tions. Ministers will no doubt agree that whatever decision is taken should apply in principle in peace as well as in war. Thus, if Ministers decide that balance of civil pay is to be discontinued in peace it must be with the firm intention that such a policy will be continued even if war broke out.

13.

The position of the Z Reservists. If Ministers decide that balance of civil pay is to be continued special problems arise in connec- tion with the Z Reservists, These will be examined urgently as soon as a decision on the main question has been reached.

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14th March, 1951.

(Signed) T. PADMORE

Chairman of the Committee.

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